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Money Management Tips – 50 ways to improve your finances – (Part 2 of 5)

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Money Management Tips – 50 ways to improve your finances – Part 2 – Banks, Credits and Insurance Policies :

(If you missed Part1 you can read it here)

Increasing your bank balance and having financial security is crucial for your financial health. Yet it may seem an impossible task when your salary is stuck where it’s at and there is no likely increase in your financial stakes in the foreseeable future. However, following these Money Management Tips you could increase your savings and protect yourself from extreme financial loss or responsibility due to an unfortunate emergency, accident or negative unforeseen event.

8.Become more financially authentic.

Being financially authentic means living and spending according to your values, and doing so can actually help you save more money. It might mean letting go of spending that grows out of simply trying to keep up with the consumer habits of your peers, or switching careers so your earnings line up with the values you embrace.

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9.Find the best bank or credit union for you.

If you’re tired of inconvenient ATM locations or paying unexpected fees, then it’s time to find a financial institution that better meets your needs. In addition to considering banks, it can be worthwhile to check out credit unions, which are used by more than 100 million Americans. The website aSmarterChoice.org can help.

10.Improve your credit score.

Giving your credit score a boost can help you land a better interest rate on your mortgage or a new car loan. To improve it, you can start by paying off debt, requesting a credit line increase and always making on time payments. Late payments and a high debt-to-credit-line ratio can hurt your score.

11.Prepare your money to age well.

As you get older and prepare to retire, it’s important to make sure your money will last. That means checking that your investments are in a portfolio that’s aggressive enough to outpace inflation and reviewing your budget for any big leaks. You can also ask your bank what services it has in place, like fraud prevention, to protect older adults.

12.Prepare for a potential disability.

Every day, people get injuries that impede their ability to work, and sometimes, the effects can be catastrophic. To make sure you and your family are protected, check up on your disability insurance, which might be available through your workplace.

13.Prepare your finances for natural (and man-made) disasters.

A bad storm or power outage can leave your financial life in disarray. To prepare for any kind of unexpected disaster, you can come up with a plan for alternate housing, prepare an emergency kit and keep nonperishable food on hand. If you don’t have access to heat or running water, make sure you can still keep your family fed.

14.Check up on your insurance policies.

Life insurance is not particularly fun to take out, but it is an essential part of building your (and your family’s) financial security, especially if you are the primary breadwinner. Reviewing your policies once a year to ensure they are in good standing and that you have enough coverage is a good idea. You can also check if you have any options to take out supplemental coverage through your workplace.

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We should all consider buying insurance now in case we need it if something happens. This is a proactive approach and one we should take and not forget. The idea is that we will never have to use the insurance but in case something does happen we are protected financially from the loss it would have caused.

15.Avoid big tax mistakes.

Waiting too long to file, sticking with onerous paper forms and forgetting to update your household status are among the common errors people make when filing their taxes. These mistakes can be costly, too, because they can mean you don’t get your tax refund in a timely manner or you overpay Uncle Sam. Keeping paperwork, including receipts, organized all year long can also help make the April 15 deadline easier to meet (or beat).

16.Pay off expensive debt.

If you’re still carrying around expensive debt, then it’s time to make a plan to pay it off. In “The Debt Escape Plan”, author Beverly Harzog suggests doing just that by setting specific targets for yourself (for example, pay off one credit card by April), and get the support you need from a credit counselor if necessary. You might also want to look for ways to scale back spending while simultaneously earning more money, which can then be put toward the debt.

17.Max out your retirement savings.

If you didn’t meet your retirement savings goals in 2015, you’ll want to be sure to do so in 2016. If you have access to a 401(k) through work, you can set it up to automatically deduct a certain percentage from your paycheck. Otherwise, you can check on your eligibility for an IRA.

Source: BusinessInsider

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